Mumbai the most unaffordable property market

Knight Frank India research report titled Economy & Realty @ Glance states Mumbai as the most unaffordable market with 29% of the city’s total under construction units surpassing the र10million mark as compared to 11% and 5% for the NCR and Bengaluru markets respectively. In Mumbai, incessant price rise and higher concentration of premium projects with a ticket size of more than र10 million in new launches have limited the purchasing ability of home buyers resulting in a decelerating rate of absorption over the previous four quarters.

Bengaluru is the most affordable residential market with more than 77% of its total under construction units falling below the ticket size of र5 million. This is followed by Chennai at 75%. Hyderabad has only 51% of its total under construction units below the र5 million ticket size despite the city having the lowest weighted average price among the top six cities.

NCR market has marginally improved as the quantum of new launches has significantly reduced during this period. Going forward, the report predicts the momentum in new launches to reduce significantly across these cities.